Should I Use a Fifth of My Portfolio to Pay Off $45K Debt from Health Issues?

Even with health insurance, individuals may face substantial medical debt, often leading to bankruptcy. A retiree with $45,000 in medical debts considers using 20% of their limited investment portfolio for repayment. Consulting a financial advisor is crucial in developing a sustainable debt payoff plan rather than risking retirement funds. Negotiation of medical debt and understanding long-term financial implications are essential, since debt can accrue interest and affect overall financial stability.

The danger of a big debt payoff is it could leave you with inadequate funds for the remainder of your retirement.

Medical debt can be costly, and the longer you carry it, the more interest you might pay on it.

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